Fund subscription rate refers to the proportion of expenses that investors need to pay to purchase fund shares. When investors subscribe for different funds, the subscription rate may be different due to the size of the subscription amount. Here, calculate the maximum rate.
The subscription amount of open-end funds actually includes two parts: subscription fee and net subscription amount. The subscription fee can be calculated according to a certain proportion of the subscription amount or the net subscription amount. The domestic practice is generally to multiply the total purchase price (including fees) by the applicable rate to calculate the purchase fee, and deduct it from the purchase amount. In this way, the calculation method of the fund share that can actually be bought by a subscription amount is as follows:
Subscription fee = subscription amount? Applicable subscription rate
Net subscription amount = subscription amount-subscription fee
Subscription quantity = net subscription amount/net fund share value on the subscription day.
This calculation method is very common in overseas markets such as the United States. The advantage of this method is that in use? Unknown price method? In the case of, the calculation is relatively simple; In addition, because the decreasing rate is generally used according to the increase of subscription amount, it can avoid the unfair phenomenon that investors who buy less may actually pay more than investors who buy more according to the net subscription amount.
Using this calculation method will make the applicable rate according to the net purchase amount slightly higher than the published rate. If investors want to know the applicable rate based on the net subscription amount, they only need to make a small conversion:
Rate applicable to the net subscription amount = rate applicable to the subscription amount? (1- Rate applicable according to subscription amount)